Answer:
All good marketers
Put themselves in the shoes of their target market
Explanation:
This creates a personal experience of the marketing efforts and makes marketing a more targeted and conscious activity that is aimed at rendering the best service to the customer instead of just exploiting them. The awareness that marketing creates about goods and services is essential in the supply chain and value creation as a whole. To achieve improved success, a good marketing must be able to put herself in the shoes of their target market or customers.
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, 2021 $ 340 January 1, 2021: Projected benefit obligation 2,450 Accumulated benefit obligation 2,150 Plan assets (fair value) 2,550 Prior service cost—AOCI (2021 amortization, $40) 340 Net gain—AOCI (2021 amortization, $6) 360 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 275 Benefit payments to retirees, December 31, 2021 300 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Answer:
1. Pension expense $291
2.A. Pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO $512
B. Gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Explanation:
1. Calculation to determine the Pension Expense
PENSION EXPENSE
Service cost (given) $340
Add Interest cost $172
Less Expected return on plan assets ($255)
Add Prior service cost $40
Less Net gain or (loss) (6))
PENSION EXPENSE $291
2. Preparation of the journal entries to record
(a) pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO (service cost + interest cost)$512
($340+$172)
b. gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Working :
Projected benefit obligation ($2,450) x Discount rate (.07) = $172 Interest cost
Plan assets (fair value) ($2,550) x Expected return on plan assets (.10) = $255
Plan assets (fair value) ($2,550) x Actual return on plan assets (.09) =$230
Gain or (loss on plan assets) $255-$230 = ($25) loss
Service cost (given) =$340
Prior service cost (given)= 40
Benefit payments to retirees, December 31, 2013= $300
Cash contributions to pension fund, December 31, 2021 (given)= 275
Net gain or (loss) (given) = (6)Net gain–AOCI (2021 amortization
Production Budget Pasadena Candle Inc. projected sales of 800,000 candles for the year. The estimated January 1 inventory i 35,000 units, and the desired December 31 inventory is 20,000 units.
Prepare a production budget report in units for Pasadena Candle Inc.
Answer and Explanation:
The preparation of the production budget is presented below;
Expected sales units 800,000 candles
Add: Desired closing inventory, Dec 31 20,000 units
Total units available 820,000 units
Subtract: Estimated opening inventory,Jan 1 -35,000 units
Total units to be produced 785,000 units
Hence, the above format should be prepared for the production budget
An organization whose capacity is on that portion of the average unit cost curve that falls as output rises: has a facility that is below optimum operating level and should build a larger facility. has a facility that is above optimum operating level and should reduce facility size. is suffering from diseconomies of scale. has utilization higher than efficiency. has expected output higher than rated capacity
Answer:
has a facility that is below optimum operating level and should build a larger facility.
Explanation:
In the case when the organization whose capacity should be on the average unit cost curve where it would be decline when the output rises so this means that it has a facility i.e. lower than the optimal level of operation and should established the larger facility
Hence, the first option is correct
And, the other options would be incorrect
Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is $1,770,000 installed. CP borrows 48% of all capital needed, and the borrowing rate is 13.4%. In the 1st year, 25% of the principal borrowed will be paid back. The throughput rate for in-process test samples has increased the capacity of the lab, saving a net of $X per year. In this 1st year, depreciation is $362,000 and taxable income is $329,000.
Required:
a. What is the gross income or annual savings?
b. Determine the income tax for the 1st year assuming a marginal tax rate of 40%.
c. What is the after-tax cash flow for the 1st year?
Answer:
Chevron Phillips (CP)
a. The gross income or annual savings is:
= $804,846.
b. The income tax for the 1st year assuming a marginal tax rate of 40% is:
= $131,600.
c. The after-tax cash flow for the 1st year is:
= $559,400.
Explanation:
a) Data and Calculations;
Cost of new laboratory equipment = $1,770,000
Borrowed capital = $849,600 ($1,770,000 * 48%)
Borrowing rate = 13.4%
Borrowing interest expense for the first year = $113,846
Depreciation = $362,000
Taxable income = $329,000
Gross savings = $X
$X = $804,846 ($113,846 + $362,000 + $329,000)
Income tax for the 1st year:
Marginal tax rate = 40%
Taxable income = $329,000
= $131,600 ($329,000 * 40%)
After-tax Cash Flows for the 1st year:
Gross savings = $804,846
Interest expense 113,846
Depreciation 362,000
Taxable income $329,000
Income tax 131,600
Net income $197,400
Cash Flows:
Net income $197,400
Depreciation 362,000
After-tax cash flow $559,400
On December 31, 2020, Nash Inc. has a machine with a book value of $958,800. The original cost and related accumulated depreciation at this date are as follows. Machine $1,326,000 Less: Accumulated depreciation 367,200 Book value $958,800 Depreciation is computed at $61,200 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.
Answer:
a. Depreciation expense = $40,800
b. Depreciation expense = $15,300
c. Depreciation expense = $35,700
Explanation:
Note: This question is not complete as the independent situations are omitted. The 3 independent situations are therefore provided to complete the question as follows:
a. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $438,600 was received for this casualty. Assume the settlement was received immediately.
b. On April 1, 2021, Marigold sold the machine for $1,060,800 to Yoakam Company.
c. On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,122,000.
The explanation of the answers is now provided as follows:
Note: See the attached excel file for the journal entry for each of the 3 independent situations.
In the attached excel file, the depreciation for each situation are calculated as follows:
a. Depreciation expense = $61,200*8/12 = $40,800
b. Depreciation expense = $61,200*3/12 = $15,300
c. Depreciation expense = $61,200*7/12 = $35,700
All of the following are potential exchanges between the fan and the event EXCEPT
Ticket purchases
Purchase of ancillary products
Purchase of sponsor products
Referrals
Answer:
Purchase of sponsor products
Explanation:
The purpose of cascading the balanced scorecard throughout the organization is: _____________
a. To help all employees think about, discuss, and implement the corporate strategy.
b. To ensure strict hierarchical control of the organization.
c. To customize the organizational mission and goals for every employee.
d. To create detailed performance measures for each employee
Answer:
b. To ensure strict hierarchical control of the organization.
The purpose of cascading the balanced scorecard is b. To ensure strict hierarchical control of the organization.
What is cascading?Cascading is a term that describes the positions in an organization and how an organization is been set up from higher heirachy to lower heirachy.
Therefore, with cascading, hierarchical control of the organization can be checked and be monitored.
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Dorman Industries has a new project available that requires an initial investment of $6.1 million. The project will provide unlevered cash flows of $835,000 per year for the next 20 years. The company will finance the project with a debt-to-value ratio of .3. The company’s bonds have a YTM of 6.2 percent. The companies with operations comparable to this project have unlevered betas of 1.31, 1.24, 1.46, and 1.41. The risk-free rate is 3.2 percent, and the market risk premium is 6.4 percent. The company has a tax rate of 40 percent.
Required:
What is the NPV of this project?
Answer:
NPV = $ 400,115.43
Explanation:
NPV of this project = $ 400,115.43
Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. Assume that actual sales for the year are $480,000 (26,000 units), actual variable costs for the year are $112,000, and actual fixed costs for the year are $145,000. Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)
Answer: Check attachment
Explanation:
The flexible budget performance report for the year has been solved and attached.
Note that the selling price per unit was calculated as:
= 400,000 /20,000
= $20 per unit
Therefore, total sales was gotten as:
= 26000 × $20
= $520,000
Variable cost per unit was calculated as:
= 80,000/20,000
= $4 per unit
Then, total cost was:
= $4 × 26,000
= $104,000
Check attachment for further details.
Sensitivity analysis in the calculation of the adjusted present value (APV) allows the financial manager to Multiple Choice consider in advance actions that can be taken should an investment not develop as anticipated. more fully understand the implications of planned capital expenditures. all of the options analyze all of the risks (business, economic, exchange rate uncertainty, political, etc.) inherent in the investment.
Answer:
all of the options
Explanation:
The sensitivity analysis would work in the case when the adjusted present value permits the financial manager for the following reasons
1. It considered in advance actions that should be taken as an investment
2. The impacts of the planned capital expenditures
3. The analyze of all types of risk whether it is busines, economical, etc that should be inherent in the investment
hence, it is all of the above
Which statement best conveys the bad news of the refusal?
a.We were able to save valuable resources that otherwise might have been spent on keeping out-of-warranty gear in working order and on missing peripherals such as monitors, keyboards, and mice.
b.To ensure compatibility, proper software licensing, and the same useful life of the equipment, we decided to accept only new and complete systems.
c.We regret to inform you that we cannot accept your used computing equipment as much as we appreciate your offer.
Answer: B
Explanation:proof
Help! Which tasks commonly are performed in Management and Entrepreneurship jobs? Check all that apply.
packaging products
managing budgets
predicting future results
tracking inventory
hiring and supervising workers
visiting customers’ homes
setting goals and strategies
help me i am being help hostage to do homework
Hello There! The Answer to this problem is: B, C, E, G
Explanation:
Answer:bceg
Explanation:
Test completed
The following information pertains to Carla Vista Company.
1. Cash balance per bank, July 31, $7,738.
2. July bank service charge not recorded by the depositor $48.
3. Cash balance per books, July 31, $7,774.
4. Deposits in transit, July 31, $3,110.
5. $2,426 collected for Carla Vista Company in July by the bank through electronic funds transfer. The collection has not been recorded by Carla Vista Company.
6. Outstanding checks, July 31, $696.
Required:
Prepare a bank reconciliation.
Oaktree Company purchased new equipment and made the following expenditures:
Purchase price $53,000
Sales tax 3,000
Freight charges for shipment of equipment 780
Insurance on the equipment for the first year 980
Installation of equipment 1,800
The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Prepare the necessary journal entries to record the above expenditures.
Answer:
Journal entry is shown below:
Explanation:
According to the scenario, computation of the given data are as follows,
Total equipment cost = $53,000 + $3,000 + $780 + $1,800 = $58,580
Expenses to be paid in cash = $780 + $1,800 = $2,580
Amount to be paid = $53,000 + $3,000 = $56,000
Insurance for first year = $980
So, journal entries for the given data are as follows,
Equipments A/c Dr. $58,580
To, Cash A/c $2,580
To Amount payable A/c . $56,000
(Being purchase of equipment is recorded)
Equipment Insurance A/c Dr. $980
To, Cash A/c $980
(Being insurance of equipment for first year is recorded)
Finance is best defined as
the tracking and documenting of money or things that are worth money.
the management of money and things that are worth money.
an item, such as a car or a house, that is worth money.
an amount of money a person or organization owes to another person or organization.
Answer:
the management of money and things that are worth money.
Explanation:
Finance is best defined as the management of money and things that are worth money.
Answer:
The answer is B
Explanation:
1. Which of categories are Internal controls are grouped?
A. Effective operations, financial reporting, and compliance.
B. Efficient operations, financial analysis, and compliance.
C. Efficient operations, financial analysis, and management reporting.
D. Production and operations, financial reporting, and management reporting
Answer: A. Effective operations, financial reporting, and compliance.
Explanation:
Internal controls are meant to promote the effectiveness of operations in a company so as to bring about maximum profitability.
Internal controls also fall under financial reporting because they are sometimes done to ensure that the information presented by a company is accurate and complete.
There are compliance controls as well to ensure that the company is complying with the various regulations that apply to them be it federal, state, local or private.
At the present time, Andalusian Limited (AL) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 35%. If AL wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.)
Answer:
2.69%
Explanation:
According to the scenario, computation of the given data are as follows,
Face value (FV) = $1,000
Time period = 5 years
Present Value (PV) = $1,438.04
Coupon rate = 14%
Payment (pmt) = 14% × $1,000 = $140
So, by using excel function find YTM, we get
YTM = 4.13%
So, After Tax cost = Rate ( 1 - tax rate)
= 4.13% ( 1 - 35%)
= 4.13% × 65%
= 2.685% or 2.69%
Excel function is attached below.
Bramble Corp. had 2500000 shares of common stock outstanding on January 1 and December 31, 2021. In connection with the acquisition of a subsidiary company in June 2020, Bramble is required to issue 96000 additional shares of its common stock on July 1, 2022, to the former owners of the subsidiary. Bramble paid $195000 in preferred stock dividends in 2021, and reported net income of $3470000 for the year. Bramble's diluted earnings per share for 2021 should be (rounded to the nearest penny)
Answer:
$1.47
Explanation:
Diluted earnings per share = Earnings before preferred stock dividends ÷ Weighted Average Number of Common Stock Outstanding
where,
Earnings before preferred stock dividends is calculated as :
Net Income $3,470,000
Add Preferred Stock Dividends $195,000
Earnings attributable to Common Stock holders $3,665,000
Weighted Average Number of Common Stock Outstanding is calculated as :
Outstanding end of the year 2,500,000 shares
therefore,
Diluted earnings per share = $3,665,000 / 2,500,000 shares = $1.47
Income statement data for Huffman Pharmaceuticals are provided below. Income Statements 12/31/201712/31/2016 Sales Revenue$598,000$724,000 Cost of Goods Sold337,000427,000 Gross Profit261,000297,000 Operating Expenses137,000146,000 Operating Income124,000151,000 Other Income (Expense)60,00023,000 Income before Tax184,000174,000 Income Tax Expense71,00076,000 Net Income$113,000$98,000 Using trend analysis, what percentage should be assigned to Gross Profit
Answer:
Huffman Pharmaceuticals
The percentage that should be assigned to Gross Profit, using trend analysis, is:
= 42%.
Explanation:
a) Data and Calculations:
Income Statements 12/31/2017 12/31/2016
Sales Revenue $598,000 $724,000
Cost of Goods Sold 337,000 427,000
Gross Profit 261,000 297,000
Operating Expenses 137,000 146,000
Operating Income 124,000 151,000
Other Income (Expense) 60,000 23,000
Income before Tax 184,000 174,000
Income Tax Expense 71,000 76,000
Net Income $113,000 $98,000
Income Statements 12/31/2017 12/31/2016
Sales Revenue $598,000 $724,000
Cost of Goods Sold 337,000 427,000
Gross Profit 261,000 297,000
Ratio of Gross profit to
Sales Revenue
2017 = $261,000/$598,000 * 100 = 43.65% = 44%
2016 = $297,000/$724,000 * 100 = 41%
Average Gross profit ratio for the two years = 42.5% (44 + 41)/2.
b) Huffman's trend analysis is the use of its past financial performance indices to predict its future financial performances. Past performances are expressed in percentages, forming the basis for predicting and comparing future performances of an entity.
Copper and nickel electroless plating processes are under consideration for printed circuit boards. The copper process has fixed costs of $110,000 per year with a variable cost of $50 per batch. The nickel process has a fixed cost of $85,000 per year and a variable cost of $90 per batch. Determine the number of batches that must be produced each year in order for the processes to break even.
Answer:
see explanation
Explanation:
The question has missing sales price information, however explanations are provided below
Break even point is the level at which a company makes neither a profit nor a loss.
Break even point (units) = Fixed Costs ÷ Contribution per unit
Step 1 :
Find Contribution per unit of each process and add the unit contributions to find the total unit contribution
Contribution = Sales - Variable Costs
Step 2
Find the Total Fixed Costs for both the copper process and nickel process.
Step 3
Determine the sales mix for copper process and nickel process
Step 4
Calculate the Break even units for the 2 processes combined. After that multiply the respective mixes to the break even point
Exercise 10-2 Recording bond issuance at par, interest payments, and bond maturity LO P1 Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $2,700,000 par value, mature in four years, and pay 6% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
Answer:
June 30 Bond Interest Expense Dr $81000
Cash Cr $81000
(6%/2*$2,700,000)
December 31 Bond Interest Expense Dr $81000
Cash Cr $81000
Bonds Payable Dr $2,700,000
Cash Cr $2,700,000
Explanation:
Record the entry for the first semiannual interest payment and the second semiannual interest payment.
June 30 Bond Interest Expense Dr $81000
Cash Cr $81000
(6%/2*$2,700,000)
December 31 Bond Interest Expense Dr $81000
Cash Cr $81000
Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
Bonds Payable Dr $2,700,000
Cash Cr $2,700,000
definition of business by different authors
Answer:
The term business has been defined by different authors from time to time as follows: “A business is nothing more than a person of group of persons properly organize to produce or distribute goods or services.
Explanation:
Answer:
The term business has been defined by different authors from time to time as follows: “A business is nothing more than a person of group of persons properly organize to produce or distribute goods or services.
LYFT IPO was issued at $72/share. Before the IPO, Lyft had 240 million class A shares outstanding and wanted to issue additional 30 million class A shares. On top of that, Lyft gave its underwriters options to purchase another 5 million shares at $72 each. When Lyft stock price fell below the IPO price of $72, to support the stock price, up to how many shares the underwriters could buy from the open market without losing money
Answer: 5 million shares
Explanation:
In order to avoid losses, they can only buy the same amount of shares that they can receive in the options agreement with Lyft.
If they were to buy more than 5 million shares from the open market, they would incur losses because they would not be able to replace these shares with the ones that they can buy from Lyft as a result of their options aggrement.
16. The selling of goods and/or services to a customer is called
O A. purchasing
B. food service.
O C. service industry.
D. retail
Answer: retail
Explanation:
Retail refers to the sale of products and/or services to a customer. Thus option (D) is correct.
What are customer?A client is a person who purchases goods, services, or ideas from a seller, vendor, or supplier in exchange for money or another useful consideration. This definition applies to sales, commerce, and economics. A customer is an individual or business that purchases another company's goods or services
An individual or business that purchases goods or services from another company is known as a customer. Customers are crucial to businesses because they generate income; without them, they would cease to exist.
Therefore, option(D) is correct.
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Transferred-in costs, FIFO method. Refer to the information in Exercise 17-31. Suppose that Trendy uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Exercise 17-31 under the FIFO method are that total transferred-in costs of beginning work in process on June 1 are $45,000 (instead of $60,000) and total transferred-in costs added during June are $114,000 (instead of $117,000).
Required:
Using the FIFO method. Note that you first need to calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.
Answer:
Beginning work in process $69,000
Transferred in cost $115,000
Direct material 0
Conversion cost $20,000
Ending work in process $272,000
Transferred in cost $159,000
Direct material $27,000
Conversion cost $86,000
Explanation:
FIFO method is the one in which the inventory bought first is used first. Weighted average inventory system determines an average rate for all the inventory purchased and that rate is used for the calculation. Both method are used widely but there will be difference in ending inventory in the two methods.
In 2021, due to a change in marketing forecasts, Barney Corporation reduced the projected life of its patent for producing round dice. The cumulative patent amortization prior to 2021 would have been $18 million higher had the new life been used. Barney's tax rate is 25%. Barney's retained earnings as of December 31, 2021, would be:
Answer: unaffected
Explanation:
We should note that a retrospective adjustment isn't necessarily needed when there's an alternation to a accounting estimate.
With regards to this Barney's retained earnings as of December 31, 2021, would neither be understated or overstated but would be unaffected.
Nancy Company has a balance of $15,000 in accounts receivable on December 31, of which $1,500 is more than 30 days overdue. The company has a beginning debit balance of $45 in the Allowance for Doubtful Accounts. They estimate the uncollectible accounts to be 1% of current accounts and 10% of accounts over thirty days. The adjusting entry on December 31 will include: A) $285 credit to Allowance for Doubtful Accounts B) $240 debit to Bad Debts Expense C) $195 debit to Bad Debts Expense D) $285 Debit to Allowance for Doubtful Accounts E) $330 credit to Allowance for Doubtful Accounts
Answer:
E. $330 credit to allowance for doubtful accounts
Explanation:
With regards to the above, the adjusting entry on December 31st is computed as;
= [($15,000 - $1,500)× 0.1)]
= $135
1% of the balance less than 30days
= $1,500 × 0.1 = $150
Total = $45 + $135 + $150 = $330
(Identify Temporary Differences and Classification Criteria) The asset-liability approach for recording deferred income taxes is an integral part of generally accepted accounting principles.
Instructions
(a) Indicate whether each of the following independent situations should be treated as a temporary difference or as a permanent difference, and explain why.
(1) Estimated warranty costs (covering a 3-year warranty) are expensed for financial reporting purposes at the time of sale but deducted for income tax purposes when paid.
(2) Depreciation for book and income tax purposes differs because of different bases of carrying the related property, which was acquired in a trade-in. The different bases are a result of different rules used for book and tax purposes to compute the basis of property acquired in a trade-in.
(3) A company properly uses the equity method to account for its 30% investment in another company. The investee pays dividends that are about 10% of its annual earnings.
(4) A company reports a gain on an involuntary conversion of a nonmonetary asset to a monetary asset. The company elects to replace the property within the statutory period using the total proceeds so the gain is not reported on the current year’s tax return.
(b) Discuss the nature of the deferred income tax accounts and the manner in which these accounts are to be reported on the balance sheet.
Answer:
Your question is very complicated pal
The manufacturer wishes to set up a control chart at the final inspection station for a gas water heater. Defects in workmanship and visual quality features are checked in this inspection. For the past 22 working days, 176 wate rheaters were inspected and a total of 924 nonconformities were reported. a) What type of control chart would you reccommend here
Answer:
I will recommend a c chart
Explanation:
From the question, we have:
[tex]n= 22\ working\ days[/tex]
[tex]Inspection = 176[/tex]
[tex]Noncomformities = 924[/tex]
First, it should be noted that a chart is used for a count datatype (in other words, numerical values) and they are usually discrete (i.e. whole numbers).
Notice that all the given data are whole digits.
Also, the c chart is to be used when the number of noncomformities are known because through the c chart shows the process of the noncomformities over specific time.
Write a short paragraph describing how segmentation could make your marketing efforts more effective. In your response to your manager, provide at least one specific example of how using segmentation could more effectively reach customers. In addition, describe at least two specific action steps you would suggest taking in order to effectively segment your customers.
Explanation:
Market segmentation consists of directing the business strategy to satisfy the desires and needs of a specific audience.
The use of segmentation can make marketing efforts more effective because the company finds out the profile of its customer, its needs, its income, its location, and in this way develops or improves its products and services in order to satisfy its customers. potential. An example of market segmentation is demographic segmentation that, through data, identifies consumer information such as age, income, gender to improve the product's strategy.
For demographic segmentation to be effective, it is necessary for companies to conduct market research in order to delimit their audience and then determine communication from the data and information found, in order to attract and retain consumers to increase their positioning and profitability. in the market.